(Yicai Global) Oct. 24 -- Real estate developer SOHO China Ltd. [HK: 0410] sold its SOHO (Small Office, Home Office) project in Shanghai for USD445.65 million (CNY2.95 billion) and expects to record a gross profit of CNY367 million from this deal.
SOHO China said it signed a trading agreement for the project with a Hong Kong real estate investment management group, and it entered into force after the latter made a deposit payment yesterday.
The SOHO project consists of commercial buildings in the Shanghai Hongqiao Linkong Economic Zone covering a building area of about 128,200 square meters with an office area of 103,000 square meters and a commercial area of 25,200 square meters. The project generated CNY70 million and CNY143 million of rental income in the last two years.
SOHO China said its board believes that it is a good time to realize the investment income of the project based on recent developments in the Chinese real estate market as well as the cash flow and profit that the company can obtain from the sale.